Korea’s leading power solutions company Doosan Heavy Industries & Construction said it has jointly signed a $900-million contract with global energy supplier Engie for the construction of a combined cycle power plant (cogeneration plant) at the Fadhili gas plant, located 85km northwest of Jubail Industrial port in Saudi Arabia’s eastern province.

An eco-friendly unit, the Fadhili Combined Heat and Power Plant will be jointly owned by a Saudi Aramco affiliate (30 per cent), Saudi Electricity Company (30 per cent) and an Engie affiliate (40 per cent).

As per the deal, Doosan will be in charge of the engineering, procurement, construction (EPC) work and commissioning of the cogeneration facility within the Fadhili gas plant.

A key milestone of the kingdom’s master gas system, the SR50 billion ($13.3 billion) project is the nation’s initiative to meet the growing energy needs by shifting from oil to gas for power generation.  

Scheduled for completion by November 2019, the 1,509MW combined heat and power plant will supply 400MW of electricity and steam for the Fadhili gas plant itself, while the remaining 1,100 MW will supply electricity to 1.1 million households nationwide.

Commenting on the win, Huntak Kim, the EPC BG chief executive of Doosan Heavy Industries & Construction, said: "We are thrilled to be part of the kingdom’s journey toward greenfield development.

"The cogeneration plant will enhance the overall energy efficiency of the Fadhili gas plant. It will give Doosan an increased advantage to deliver more of its advanced power solutions and services where 40,000 MW of power capacity increase from combined heat and power plants is planned by 2024," stated Kim.

Sebastien Arbola, the chief executive of Engie Middle East, South Central Asia, and Turkey, said the gas plant is one of the key projects being pursued by the kingdom to meet its power demands.

"Engie and Doosan have achieved major projects together in Oman, Qatar and Thailand. We have confidence to lead this project to success," he added.-TradeArabia News Service